The Economics of Immigration 2nd Edition by Cynthia Bansak

Exercise 6

Egger, Nelson and von Ehrlich (2012) find that immigration from a source country positively affects imports from that country until the immigrant stock from that source country reaches 4,000. After that point, additional immigrants from that source country do not appear to affect imports. Explain why this might be the case using the information about migrant networks provided in this chapter.